The Container Store files for bankruptcy, extending difficult retail season

Catch up quick: The Container Store said it filed for bankruptcy in Texas as part of a prepackaged deal with lenders that will provide it $40 million in new financing, plus debt relief.

• The company expects to continue operations.
• It reported a net loss of more than $16 million in its most recent quarter, as sales fell 11% year over year. The company also had nearly $230 million in long-term debt.

Zoom in: The Container Store is trying to avoid the fate of other national retailers that went bankrupt in the last couple of years and could not work out a survival plan, among them LL Flooring, Party City and Big Lots.

• Last Friday both Big Lots and Party City said they would shut down and close all their stores.

Zoom out: Retail store closings have reportedly been running neck-and-neck with store openings this year, in part due to so many bankruptcies.

• The National Retail Federation expects holiday season sales to grow 2.5% to 3.5% this year, which would be the slowest rate of growth since 2018.